Judge lifts restraining order on congestion-pricing surcharge

After winning a month-long delay of a congestion surcharge, the taxi industry has run out of time in its legal battle with the city and the state. A judge Thursday lifted a restraining order, allowing the state to begin collecting $2.50 for every cab ride that goes below 96th Street in Manhattan.

Passengers in ride-hail vehicles will soon see $2.75 added to their fare. It was not clear when implementation of the charges would begin. The fees are the first step in a congestion-pricing plan that Gov. Andrew Cuomo is pushing in Albany as a critical solution to funding the Metropolitan Transportation Authority.

Though the restraining order was lifted, the suit against the state is still in play. New York state Supreme Court Judge Lynn Kotler granted the city's motion to dismiss the suit, but not the state's.

Taxi interests, supported by some transportation experts, had sued in December to block the new law mandating the fees, which were set to go into effect Jan. 1. Their argument was that the fee unfairly singled out taxis and would doom the industry, which was already staggering from competition with app-based services.

Their lawyers also argued that app-based vehicles, not taxis, were responsible for the congestion that the fees were meant to address, and that the Taxi and Limousine Commission had never adopted rules that would have laid out how the fees were to be collected.

The state and the city responded that they were within their rights to impose the tax, which would be dedicated to financing the subway system and collect upwards of $300 million a year.

On Jan. 17, the restraining order was extended. On Thursday, Kotler sided with the city, granting its motion to dismiss and dropping the restraining order, but denying the state's motion. The state will be back in court Feb. 21.

"The judge's decision is a positive step in our efforts to find a dedicated revenue stream for our subways and buses, as well as easing congestion in Manhattan's central business district," a Cuomo spokesman said. "We will continue to defend the law, which was approved by the Legislature, at the next court date so that New Yorkers have a safe, reliable transportation system."

A spokesman for the City Law Department also voiced support for the decision.

"We'll cooperate with the state as necessary to implement the surcharge and follow the legal case as it develops," he said. "The city supports this important measure which will help open up our roadways, reduce pollution and generate millions in revenue for our subways."

The New York Taxi Workers Alliance, which has been campaigning against the surcharge, is hoping that Cuomo will reverse course and not implement the fees.

"We're calling on the governor not to move forward with fees that will force drivers to choose between food and medicine," said NYTWA Executive Director Bhairavi Desai in a statement.

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